The IASB Issued a New "Conceptual Framework for Financial Reporting

question 78

Multiple Choice

The IASB issued a new "Conceptual Framework for Financial Reporting" in March 2018 that included changes to the definitions of assets and liabilities. For most assets and liabilities, applying the new definition

• A) yields the same accounting results as the previous definitions.
• B) results in more conservative reporting of assets, and more aggressive reporting of liabilities.
• C) results in more aggressive reporting of assets and more conservative reporting of liabilities.
• D) results in more conservative reporting of both assets and liabilities.

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Definitions:

Event Nodes

Elements in a graph or network representing moments or occurrences, often used in event-driven modeling or decision analysis.

Event Nodes

Points in a decision tree where outcomes of a particular decision or chance event are shown.

Decision Tree

A graphical representation used to make decisions and show the possible outcomes, including chance event outcomes, resource costs, and utility.

R&D Process

The sequence of activities or steps that an organization follows to conceive, design, develop, and bring to market new products or services, often involving scientific research and technological development.